LDI report

The Work and Pensions Committee published its report on Defined benefit pensions with Liability Driven Investments (LDI) in June of this year.

The report focuses on the LDI collapse in September 2022 which led to the Bank of England having to intervene to protect financial stability.

The WPC makes a number of recommendations and supports the view that the Pensions Regulator should be given a remit to promote financial stability, by specifying minimum levels of resilience in which the LDI arrangements may invest, working alongside other regulators to achieve this.